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2/19/2015 10:40AM

‘Piggybackers’ Hitch Themselves to Airbnb, Uber

Plenty of people dream of starting businesses that transform a marketplace, and shake up the world. But more entrepreneurs are building so-called derivative startups, or businesses pegged to others’ success. Charlie Wells joins MoneyBeat. Photo: Getty

This transcript has been automatically generated and may not be 100% accurate.

... by now most of you heard of whom are lifting air BNB ... but have you heard of GST or pillow or Bary II's ... Charlie Wells joins us with the story of ... doomed Britain in the company isn't really an app to ... explain this to what is the Korean beauty of company assets of users actually startups that are built on top of other startups to most people know there's a lot of Haut marketplace targets out there like air BNB who were there we value the billions of dollars in affiliate NZ joins because it's actually ... so a lot of entrepreneur is an outcome to latch on to those companies might say ... leasing a car or two in Cooper tried for war managing a property on air BNB ... and billionfive business around that exactly so that this is this is not the newest in the world you point this out the story ... the ... has something changed recently though that makes these fees ... may be more festival of when ... I read a lot faster I think a lot of investors are realizing is that marketplace companies are taught to present a valid joins dollars ... people when the latch onto those in the Senate gave investors who may be missed the boat on investing in super air BNB ... some exposure that we forget that it's actually somewhat difficult for ... PCs to get access to investing in things like Gruber and a ... lamp with its virtually impossible for normal people exactly exactly so let's let's drill down a little one example of what this topical pillow which are the key backing off air BNB exacted so kilo provides twenty four hour support services for people who have property is listed on air BNB ... so the value proposition is essentially ... you know I've got my prop relisted when someone's in my house I don't have to manage it hello will manage it for you ... the founder of the company has maintained a compilation Sherpa therapy and of course but there's also the risk inherent bear that one of the air BNB starts offering these services itself with Alabama too ... so the throttle is a sort of diversified income not just air BNB but also competitors like the IPO and HomeAway ... when you feel that the risks of investing in something like this to the one that I think of it is using ... to build his business piggybacked an off Facebook ... that the IPL I can it be raised above my right ... they have struggled to build a sustainable business that that's exactly right in one of the season talk to have actually Investor company a lot like Zynga ... and saw a lot of parallels between baptism where a couple years ago when no where there's a lot of excitement about social media ... its growth and suddenly ... Facebook changed strategy and so that's one of the huge risks here is the retired general take from the other not the parent company's right on the startup companies that will resume their babies ... that get a look at these is Canally little brother's family or to the sea competitive there is region was a kerfuffle in Silicon Valley reigning king ... on Silicon Valley ... last framework for action said it deactivated ... that you calls least group REIT's ... Reis made some regulatory changes and Cooper's stopped deactivating them ... that was on August the flare ups for the most part it seems like Hoover is an air BNB is have their own fish to fry it yet by Shelly great story but all things come in everybody should read it on WS J dot com